Amazon FBA Explained

So you’ve heard about Amazon FBA, and you’re wondering what exactly is it and why are people making so much money doing it? Well, you’re in the right place because I’m going to show you exactly what Amazon FBA is and the five steps that sellers take in order to sell products with Amazon’s Fulfillment by Amazon program, FBA. I’m Ryan Morse with Amazing Profits, and if you’re interested in becoming an Amazon FBA seller or you already are one and you want to boost your business and boost your sales, you’ve come to the right place, so make sure you hit that subscribe button and tick that bell icon so you can be notified of new videos when I release them. Without further ado, let’s get started.

Okay. Here’s a high level overview of how FBA works. Number one, you’ve got to find a product that you want to sell. Once you find a product that you want to sell, you’re going to have to get that product manufactured, so you can find a supplier in the US, you can find it in China, or any other country in the world. As long as that they manufacture the product that you want to sell on Amazon, you can establish a relationship with them, and a popular website to do that is Alibaba. It allows people who are interested in selling product connect with manufacturers and suppliers of those products. Once you find a product you want to sell on Amazon, you find a supplier. Now, a majority of people find the supplier in China just because it’s cheaper to manufacture.

Then that supplier, once they get the product created to your specification, you can customize, or to do whatever you want to that product, what they’ll do is they’ll package it and then they’ll send it to Amazon’s warehouses. Now, Amazon has warehouses or distribution centers in 24 different states across the US, so they’ll go ahead and send the product to the warehouse. Now once the product is in Amazon’s warehouse, you’re going to create a listing on amazon.com to sell your product. You’re going to take nice pictures, write a nice description, and then it’s going to be posted on amazon.com.

Then when a consumer or a customer buys your product, Amazon will ship it to them, so Amazon is handling all the fulfillment, so FBA stands for Fulfillment by Amazon. If that customer has any questions, they can contact Amazon. If they need to do a refund or exchange the product for a different size, Amazon will handle all of that, so Amazon charges you a fee for handling all of this for you, but this is what, big picture, Amazon FBA is.

Okay, so selling on Amazon FBA can be broken down into five steps. The first step is product research and analysis. You want to find products that you’re interested in selling, and you also want to look for products that have a good demand, a medium to high demand and medium to low competition. That way, you can be successful at selling on Amazon. You don’t want to pick a product that has low demand and very high competition because then you’re really not going to sell. The product is not going to move. The first step is product research and analysis, so you want to find that product that you want to sell and then you want to make sure that it can sell, so there are some tools that you can use in order to do product research, such as MerchantWords and Jungle Scout. Those are some tools that I use all of the time.

The next step is sourcing your product. You want to contact several different manufacturers once you find the product that you want to sell and you want to get samples of that product to make sure that they’re a quality product, and you can work with the manufacturer to get the product customized with your own branding and everything else. Then you’re also going to work with your product manufacturer in order to ship that inventory to Amazon’s warehouses.

The next thing you want to work on, step number three, is your product listing. You want to create a great listing that sells. You want to have high resolution photos so your images are just really good of your product. You also want to be very descriptive and really sell your product.

Then next you have your product launch. You want to be successful when you first launch your product, so you want to get some product reviews, you want to get some product sales.

Then the last piece is product management. You want to put things in place to ensure that you’re consistently getting good reviews, that you’re delivering good customer service, and customers love your product and they’re willing to give it a review and even talk about it on social media. Those are the five steps that I have for Amazon FBA, so if you’re interested in becoming an Amazon FBA seller, check out the links in the description below. I have a Facebook group where I answer a lot of questions that people have, and also there’s a link to training that I provide for Amazon FBA. It’s a very simple laid out training to get you exactly what you need to know in order to become successful with Amazon FBA. Hopefully, you learned something in this video, and we’ll see you in the next video.